Ofgem - Suppliers and Direct Debits

[Deleted User]

Make of this what you will:

Quote:

Suppliers in the first group, with no significant issues found, are British Gas, EDF, ScottishPower and SO Energy. Our review found that these suppliers generally had robust processes in place, although we did make some minor recommendations for improvement. We are asking these suppliers to review customer direct debits to ensure they are correct as an additional reassurance for consumers.

The second group, with minor weaknesses identified, consisted of Bulb, E.ON, Octopus, Outfox the Market, Ovo, Shell and Utility Warehouse. For this group of suppliers, we identified some weaknesses or gaps in their processes that could lead to poor consumer outcomes. Examples include lack of documented policies or guidance for staff, potentially not taking account of all relevant factors when setting customer direct debits, or risks that some customers’ direct debits are not assessed when appropriate. We have started compliance engagement with these suppliers to secure improvements.

We identified moderate to severe weaknesses in relation to suppliers in the third group. This includes Ecotricity, Good Energy, Green Energy UK and Utilita, and covered a spectrum of weaknesses, ranging from inadequately documented or embedded processes, weak governance and controls, to an overall lack of a structured approach to setting customer direct debits. We are concerned that in some cases this could lead to customer direct debits being set incorrectly, or not being evaluated for a long time, which can cause the build-up of either unnecessarily large credit balances or debt, depending on whether the customer is under- or overpaying. We are starting compliance engagement with these suppliers to drive rapid and robust improvements to processes and reassess customer direct debits where necessary. If these suppliers don’t take action or provide assurances fast enough, we will consider Enforcement action.

Unquote

Source: Ofgem

QrizB

Thanks Dolor.

Ofgem press release here:
https://www.ofgem.gov.uk/publications/press-release-ofgem-requires-improvements-energy-suppliers-customer-direct-debits

Related Ofgem statement here:
https://www.ofgem.gov.uk/publications/ofgem-seeks-improvements-12-suppliers-relation-customer-direct-debit-setting

Usually the press release is the short-and-vague one, and the statement includes additional useful information. This time the press release seems to be more comprehensive than the statement is.

bristolleedsfan

https://twitter.com/g__j/status/1547204283191492608

QrizB

bristolleedsfan said:

https://twitter.com/g__j/status/1547204283191492608

For those who aren't among the Twitterati:

bristolleedsfan

QrizB said:

bristolleedsfan said:

https://twitter.com/g__j/status/1547204283191492608

For those who aren't among the Twitterati:

What is difference between your reply post and post of mine that you were replying to ?????

Reed_Richards

bristolleedsfan said:
What is difference between your reply post and post of mine that you were replying to ?????

@bristolleedsfan, you posted a link, @QrizB posted an image of what the link points to.  They imply that not everyone will be able to view the link; I can but I have a twitter account.  

bristolleedsfan

Reed_Richards said:

bristolleedsfan said:
What is difference between your reply post and post of mine that you were replying to ?????

@bristolleedsfan, you posted a link, @QrizB posted an image of what the link points to.  They imply that not everyone will be able to view the link; I can but I have a twitter account.  

Thanks for help with that, on my screen posts are identical, link and image, everyone can view the link whether they have twitter account or not 

k_man

Without trying to derailing the thread.
I also seem the same on both i.e. the link is 'expanded' to show the same as the posted image.
This is even in an incognito window.

@QrizB do you seem something different in some browsers?
Worth knowing for future reference, when we are trying to share information.


Back on topic, my first thoughts after seeing the first headline, is a potential widespread reactionary reduction in DD.
To be followed post Oct rises, and through the winter, by lots of users facing big unexpected jumps.

That isn't to say some DD levels haven't been excessive.

pochase

A few users here have reported their success in reducing the suggested direct debit amount because they "felt" them to expensive. I think that is what Ofgem is seeing.

This will cause a lot of grief next spring when people are suddenly in huge debt, and the resulting direct debits will become really unaffordable.

Seems to me some energy companies reacted to the Ofgem investigation by giving in to requested reductions even so they knew better. And now Ofgem is - rightfully - blaming them for exactly this.

Xbigman

Multiple posters have mentioned Octopus lowering direct debits on request. This could be a problem after winter when massive bills arrive. It is interesting that OFGEM were investigating DD's that were too high and found a problem with Octopus having direct debits too low. I wonder if those customers who are about have have their DD's raised will thank them.


Darren

MWT

Xbigman said:

Multiple posters have mentioned Octopus lowering direct debits on request.

Generally, it isn't 'upon request' with Octopus as customers have direct control of their DD settings.

Given their innovative tariffs like Agile & TEP, they have attracted a good number of customers with Solar PV, at this time of year their DD settings will be close to zero in a lot of cases.

Ofgem are a rather blunt instrument at times it seems...